Stellantis says a weak industry backdrop and China competition could weigh
U.S. listed shares of Europe's second-largest automobile manufacturer Stellantis NV (NYSE:STLA) are down 12.6% at $14.04 at last glance. The automaker cut its 2024 profit forecast and said it will burn through more cash than expected, citing a weakening a "global industry backdrop" and stout competition in China.
On the charts, Stellantis stock is trading at its lowest level since January 2023, and a far-cry from its late-March record high of $29.51. The security is on track for its largest single-day percentage loss since March 2020, and it's more than 40% lower in 2024.
Analyst recommendations are all over the place on STLA. Of the 17 in coverage, eight say "strong buy," two say "buy," six recommend a tepid "hold," and one rates the security a "strong sell." Elsewhere, the 12-month average target price of $24.24 is a 73.5% premium to Friday's close, so watch out for price-target adjustments to the downside.
Short-term options traders, meanwhile, are quite put-biased. This is per Stellantis stock's Schaeffer's put/call open interest ratio (SOIR) of 2.30, which sits higher than 92% of readings from the past year.
This is in line with today's options activity. So far, 9,203 puts and 7,375 calls have traded hands, which is 5 times the average intraday volume. Most popular is the November 14 call, followed by the October 15 call.
According to the stock's Schaeffer's Volatility Scorecard (SVS) of 99 (out of 100), options are an intriguing route when looking to speculate. This elevated reading indicates STLA exceeded options traders' volatility expectations over the past year, a boon for premium buyers.